VALUATION PROLE Ss 1) Detowwine the Method of valuation 2) Dom 3) DE 4) Csthime odie Pures —> Gbalobe Grovoth note &) Colbie ——> Decide Pld CPE and FOE C) Caleulaki cost-of Copdel 9 CWE CeAPM ce otter butiod) — Cop carn =f + bem pe) Es Ghedate Re Ls Ghats Pela G Calartate marcel isk Prasat 1) Caleulati fountinad ube rit ©) Colurkati ae unlue Cfrssents Under )I MR eXoM = 1K) med CO laa) yoluclian —-— Nowine) toune foal Jou, — Sgnere inplation — foal tkcount.scate o7_Hao| risky | (s #lld_comapannes ,_ ov tie HARGINAL wvestors 7 Attauned-to be Auvers pied . & Hold a. lot of Yoaret, aun. unpack Pier bv The nuk of Hack ic added tO A E Risk Faw > (owning ently should haus as sie ie a ea Be veomidexate + Lune. horizon ‘The Cost of Equity: Competing Models zen een Sat ERE ton emer ae SB US h Hulk free pati —> for valuation, cosh floux extend Use may paid. # EC Hf rola lion fat eee hen Hae ares tao many. option > ote tte lowelt-to gt close fo on dygaull pce 7 He tue gourmment bas default suk (Lot a. And nated co) — Pewe tue diuilt spool iGo te find foul sped DO peace Soleumuuialid bord wate [73-4 121) CD 0S Bil) Bond wate © 181 O¢ @ ons Markel —> doy get default: sped © fader dowel have etter ae} soveupe naling — leotup elle Ay prec Ox sabig 8 > tb combo pith Faldo du qa ) Tp We 62 Scove —> hu apr Sanne SOP. Miu rey = Rhw As tin crn Cig Os ne) «et pre ——> vgs run of, cob (tok conden i ot iat. f dinondaatd Bead) — —> si arkab sink (Indin— Us)Equity risk premiun Slruminm on tunertrr eypeds fo eaun omar, suk prea state (Because pou. are dog equ) Historica — Bren Wistovically cored aloes RF © henoner estimate, from pat , ts Slalitlica) avd there is always std over: ® Prosnon bored ou bison sce Hk marble Yona tug ch = Baie. Bord Shpseo Goes — tat yas Gah uo (opeded EL) — Dividuuals Gg Boks - frugal ened powthacte Um ths date +0 (glulate buybacks Hank with epout spren —> SI de tin Coury 65 =e ein ag Track ae + to palin Market preeiuyGETA ze Appoachs t tinted) dota on wookel pruces + the individusl Yvan Regpervion of sutton on vest us aginst inant etn taste fnday Aye OF bam Teepe of sayin ie toe an of, foe, abo alld Baa Stock rolune = Felusine— flung) EDive Retuwet-1 Ohetten ~ Period hong us cant Bata. jon Fundaneatol ~ Yt of uyornead ( Dsrenang of ea) charucterubice c iy (oWtnage - Finamcal fepowge oe ode et © igh phranced leverage @ = tg mls 7 pun (Caforut exper) higher Rela etlewbectonl bod ines berome [ole ae Nhat busine 4 Find 0 mens publicly traded compasina iu the sedi. Find out toeit Betas Anorage them, Take cut toe enenge yicls (Roth ep a Fi) — Unlewrored Pe 2} thot ic the seme ny ¢ 7 Tg muliple buvinuncs—> tue name nee to Cabaulste 00 Arey: Beles 3) Hou muuch. OIF watin —> setensy the ale ~ Cafuond ¢ luo) A fring ifs ate TERT dy Native), Titomadzbnef/ saber specifier 8 ety atin up Bat $ Arne Te rae, meploced te. rugsenion Lem. wilt supenion Bela of 2 cos Sabiticaly, a4 the. dot seve, Range HE ict A$ frawnus iu ome busines + 4 & of busiron sali baseinert wat autiple of ravens Mae. conpames we Hediy st pudhpg a mullipls uitts Me. xeneae geal buviners cond he. ttiak~ ac weights. Yte the to DIE raalin try wale of 7eoproply ule ton wpe 5CAM Bekiw wig sugpunion (5 wet wpe na pede mh lato halal bot hal) ~ Then in Ae ern of Bele The median stondend oyios Cau be a6 hugh of 20 ~ Hw much one company pode the Wndix com alto gine erroneous wuulte. a 1 Juha buds ye dt & — Tod a wong pally traded companis bn the tedor: Find ut thle Beles Avovage them, Tae cub toe leverage we rama mix to calculi 10 Arog: Bebe 3) How much O16 watio —> elena, the pete §) chy baltom up Betas § eile ts alata ey Peele A xovumis in one buninens a & of busines im another busenerd tha multiple f ranenua fase ot we Prada seating a mulls ity Hae revenue og cache busines awd ie that as welghle. Use the co. PIE Halia 4 ey nal. of eogrofiy ube ib pays magonky of HxGROWTH (bevertnenk om SHtidony) () Historic (2) Furtomental dufernunaree Cetoeh cuukadte. 40%. cf qront SELL fiw ) Pa Crows mn” Dorit naati, Avg Si qeautal cn hang ieomalic i) nang! a Awuplion > mao e sh nob tue but oe thus, tin nek rome = 1 m EPS Vert an ponds H we polo this ansunrp ton 1 it Wpwows. am freon ag im &F. pal lord Hew mantle equi pon raiwets “hore ua Lot of toe back into tre business i Wistinitol Growl v pay - Nek pee + Aw We ROE im broadly come ; Cea ait) aa fo ~ {lle fo po conelsin h lererage => POF vio hisbuuinf amd fain, if FAT osgen > UD Ind rote gens sate POG = Roc +O). (ROL~LLItE) A Youre 2 Hog Groustte As b (Roc + of€- (Roc~ ities) by “uo ; egal ear , fepd OD PWS ON REVENLE SRow>ny Gia ny Oe ct de yeas (nat Ay) he ‘Ons Bete la mall ed te : How td Atimele Peete Fal (om Firm) y CMumnoti PUR Y UWimale ig nal ido) 3) Clewlae rug. rein wong Salis to cop valiCock oF Deb tobuk 6 att 2D Contractur) commtment All Tliuat beanivy imatuuyend Damage om dofaubte Louk of duobk = Rate @ wlurh Can bersou> > rufleck dfaull nish an 4 e “¢ fis al ie Bers LD arrme Hot the nobbower cost th the mankel mot Kan debt will be dame ay tong th ot db Cod = Rp H[Defaulkcpread J—> Charged by Banke |Rordholle jor cuit wit v How 6 OH bor Oudit matting — wre tot to identify © i @ har a bord i = thal Gunes me mate: What if & i nob Budel 2 — oun — nd ont Sakoust Grerage 1a peers opens) — get naling you Com alto commds tire coyucliy dapaule sk COT OF capital : We We market Value wughtssubi © Q ) Hiutini of Equk, Rucarcl. — Fandomuitolt L Moparts L table ve hud. Ally Firms bx Ourol 6 Reinvab act imcensict ons @ Historica) Growth, J “ios Meantime problems wheter, not = ie Goat ov Geom bie i: San. Cait ete C (Ore of volatlt ) singe Fowoblem|? ——> Fecnter on pot d Woee Aa ty : grove trend and wip “my Tntermediete. Ocean He Their is lot of noise with bastaricof Hout Hales . HN Little 40 no Come ality ebsowed bov0v CQ becae accouirbrg Uno hore ener tnpack on Roreriiey | ar Youre 2 High Grout fv hy “vo a ia Repo earn Papa db (D PWS OM REVENOE |RovoTi @ so ey to each 7€ab (not Ay) @) we Near we in. prepechions 9) ln ole ein robes - Fundamental Determinants Sfp Grovott Growth %n Bw L : vk, enruings en Sarre +h hagh ( Poe: + vetenbon)= gh gowtt Rots (the tiams 7 wot being allowed 10 roite nan ef: Hanes Thus eprwusts TM nat Income. Growth in EPS A Howe relax this a@ssumphon _" i a ‘ th a™ PS j aA Net owns + Net Trcome 3 Fundamental gout t Meature the PweePments a back “ute tls business [LoE1—+ ty Broader genre NR leverage = T POE . CAL: sade Hy PAT Mangan = RoE = Roc + _D (Roc - t(I-4)) GGb {ROC +DlE (Roc~% U-£)) d = a Dun to — Eppicieney Peinwestmentt Genenatial L Grovwt, due to & suturns ou existing “no- “nowtn fn Operating Invomne :— 3B Scoarwas L ji ee L ‘fundion % foment mnt pale Roc msg fonatant soe SPeant Puanuad cechemellout ts throat int m sutabi cb pa dt a Leute (Ds. Hrok heme juortty expavded cpucti caulty omd fate yeinwert unt” night Aovumre WG Ue aduast pup Frronage Trea RAD oepennes | ep Levrevoge expenses Commrtent - 9 Com & pow has —ne nerertnent uate ? fob 1%, if Dep > Capex ox CKUM we decline fn HO -Cap- NZ aa, nate im m pu Ne Oure Fiamy —Roewrnug Precast how? if Md Fame < Rovere = tlomali wht Sre - Feeetath por ney ence it mabo4y BS Gears bared oyManger (Historica) ov Tidus Ay) 8) Calukoti req. yeiweruunt weg Soba Copied Puho- £ estimate Fevenue growth AD VideD CAAA" point) ~ Leck @ Wuboue) prowts nales, not bound 7 Hone - eure rates ake lotateo| — > thet low, as focured ~ Ne qowth — PemoettraR —_—— SpfideneTerminal Value O wqudetiou Valiuclion —> @too end you liquidate tos Anek (leh say posts rears) Z) Malte Growth, Model —= Cha prc eal Kate focus Husa Approach ——e Nemes" — Wot an tnebunse VYalualien —Retatine SIABLE owt tl Bol vet oneal the. cop | joel aut] onk mraad| thot lof ccnont. + psc oe Hale > Sp Tag emp hood 7 same pY govt sale AE Cosdation Hoc cuseuk § futive powth Dont ott 20 any yoart for grew. — fi leek © recut 9 in mavens, (noe) WudusDiy, compelilicer pdveuilage FEB exes nections Roe ou peypetiul - Compare wit Coc > 4 - Loe will cone wader Socoawward premive fon conapetitics Sy ote Comet uoudet tin LOC m Sfeady— sete, Roc. duould go 40 oe. g dort eaatlel « Termine Value will eemain same HY Gu sable pexiad > Cowes Coc, tot blest) bi ableFree Cash Flow Gun {low to equity Fwnertig = — Diuldonde + Buy backs + Potoutis} Dividerds SR Bes prep GoM, (low 40 eudine burma — Of Lone ~ Tax SLL CARNINGS — failing (2 months ic the best Se = NAMalie the earnings (commodit, o gel) Comp — Glugeiivalion of experts (teases 2 ed ay Menu op deen sf Financ exp ; cor exp Srngatt of pibobicnd soaea Non ret: ep: Pieount te tease commbmenk @¢V wring cop dicccunk nate 7 bt torrie Hoe] eum [case fagerent @ evd of 152 SS Tate ag Neate, troawakuank merge IF donapae valus A Cee Huumprany commukmouk © ond mf IS — low many (fart Moe Dumpi, Hands - G [oases become del Ls Get tu cost 9 capibef Debt yalid 8, coow L whan you en auth at Cop Mel) you han to change spruces fib Rusti tre of Prcome 9 Md doode exp © dLeprecialiow Pog ee ep ale Laases, tt becomes pant ef Prvested copdal The Nok effec Can he ire, —ve, Muhrt bared om coy — Hilly valation fu te compan. ek Tncome — vet Peunwest meat Paseand cand Dew Expense - CAPITALISATION eek pb Rane — Palreipectionn effec REP COI (i-tow wake )+ Dep FeTw-weFu FE = Fete - Pat (fare ep 1 2 Guia ammosticalte Lfe forR2d (Take onaverng) Step 2 2 what were PAD exp. each, ™ jong back & Sep 3 bouite. off each year based om auvctieation Life Nee Gorrlty Conteguanrrs (Dap Puome D EMI RD © Bef) 5 Dor Voy Income © Cel. docint a, tncluditg unewvasticnd 80 2p 1 copy he ng RoC Cf) @a Aiwags we marginal Lox nate eyfedive tax sates Fs wil lowe fob jn Tase efer tae taxer ucbucls Sank eppeckiv:, go marpenad 2 REINVESTMENT Adyistid nat pee = WE pee + cusouuk prod RAD exp — Anorh zalien filets add | Aquailton of eflas pms Gaol alte be oduatid « Adfutil et Gpex = epee fa a tet — Amortization of ouch eypensesPaite 40 Book Valve fo= Of ROE = _Efto Far av ay. fo = BUoK EOE» Payout salio X Cin) Gn fo = pev = ROE natiox titan) by, fea Y POE are based om julurs expected eanwmin } = Urtazout) xP06 p= Pav = ROE x fagout iio ___, fo _ pov = Pot-2, Bo ae B = fa-goutseatzo vy pov saat , We = Pot — I | WE? Roe —+ <1 eqrowot PoE Ceomponion variable) £ tgh POG — tag fev {) evLeeiroa The is Hy popular, Que FoF, Za fe MACCTy €V(6 air 0A oped fr EV = GRIMA Ct) Deft) Cox -nweep tox vale won © tot [fammednar aa did. beg Gourds higher ferred. > fowes Eth diduct GU 2 Uk) Dep lW/EOIDN ex |g o>} + we Cn aloud £ iy pr? Guth rd waceg weg = WA Whe abet vot @ par for amy g, how much RYE Vag tng & for bee G2 Very Riity 2, veg Ritey, Coby 9 thuyl coc) low multieMurthipl, —» Suwerse behediqelels Hubtpl, > Dmemse (Oa ginem gout) s} EV [saber puultiple —> = Fespwestanteh soe A Linteop — ev (Sls — tpl mang Dekesuni olin 5 The Determinants of Multiples... falue of Stock= DPS Vike COMPANION ARIABLE Es Pog (Pe;PaoaRato) — (PecePayourato PBV-ROE (Payout ratio) PS= Net Margin (Payout ratio) (save) (s9Ve(-9) (9Me9) (anes) PE=l(9, payout, risk) PEG=f(g, payout, risk) _-PBV=f(ROE payout, 9 risk) __-PS=l(Net Man, payout, 9, risk) Equity Multiples Firm Multiples VIEBIT=I(9, RIR, WACC,t _VS=(Oper Mgn, RIR, @, WACC) VIFCFF=1(g, WAC) V/EBIT(1-1)=((9, RIR, WAC: VaelECFF=(t49)) _( ValuolEBIT(t-) = (149) ( vaueesrr-(1-9x3-) (_ ¥Ss Oper Magia 1° (WACC-9) (1- RIR)(WACC-) RIRY/(1-1)WACC-g) Fn) (1ea)hWACO-g) Value of Firm = FCFF 1/(WACC -9)quity value and EV vowed Equity Value = Market cap = ticker fru = M Puce x no g, teas els — hod ~ Cpt} looses | bebe Line thems Came ab aboue Q Ang 7 Rucbuactuauirg | Emiso nmentod Usb v SogsTRAcING mems ku tha thot will same oy Ww some Teel le at eft Whmadectly oth Fudtine — buh ~ Rat tosses G wll same go money tlovouytn texdeductions ta paltine- ~ Slewn, lengiowm Taw - Ls Ty Lud emougle htuat fem do Aad wen — comtrelting faforurt (Murory) Ky yor ou 201 sf ato = Unnietidele fevers fapsded = foo 1 Cuil, value feplrcted = eo ovoned v poe odd ease Non Tus we add non—contvelliny fatout ie the pou Hat we do rot own against the xwemwe that fs wot our oum- hare we Enterpsiie Value 2 ely lois Menke cap — tfremd, high Cally rol. (Conpanin on te. bok. of Barkrpe)g& paid oreo pot eponlan on fost oan) opti fl Ans- 1) Pulure expectaltovs of Puce Inoume Tre barred by company Q wtwt is Take note ? Pre Put gg Tid is big deal for pagmmente amv prourrie CO. v Gyo Mochondizury Vola OD an tu tut value be -we 2 bel fg valu Fis value ~ Debt Ol We are-fakoy market values Hoan, Had Ls vot pomble because make value 4 & Caml be —ve ©) 5 you haus etn etc pi Value usps DE 4k mv bebe equsty_taan be We sod l ee EXtiwalin essor — exfrated 400 Lovo ols MU g debt is Oveitatef : SS tuyliy 1s coal 4 on fom 1s uote Nothing~ Digount ta. teane somunkmunt QV Wing con diecount vate = Whaat toppers ty Lump eum Kone payment @ cod 152 G Tate aug teake conuwitiacn NEG IE congas ual A Gee Heawpeary commitment © end IE ~ haw many gears de lumprn, ands. G fenaes become dob Ls Ger tru cost 9 apie bt yall 1, wow Lb tle you freak lanes ax cay Adel you ane to change Acpracis ton Rutate fre ef Frome 9 Add doo exp © Leprodalton pn pe copstalrer Loose, it becomes park of Frvested eopdol “The nok ettect Combe tie, —ve, ruber based om nit — nillinm vilation Fue the ori no Rabrotpectine effec ep | Gin ammesticalle L}e forRad (Tate onwernge) Bp 2 t wheal were RAD exp. each fe going back £ Step 3 bonito ofp sadly eat bated Om owsedircation He » O ep meome D 5 Md PAD def) __, Dor v op income. Conteguantes — - Oop ouome 7 Dcot, dovwit a , dludiey umweiticel P40 e4p tn Cop, be mg Roc. Cre) @— Aquino compan Using enasage. L, t4 mu Loan@ lof. Faterws and uacit as collateral 40 Lddt Cooblato) = Wy > Jonge oeguinitione vo [Sm Praliie before hawriny 40 comma a bat of coped (CC) Seok Gudowat oe Bacto per ipar, ook Ret Tucome [eat ally gook because 2 only paid $ [thn Yok netsMerger Model — Nie kwown as acuubion / dilution med | Mad sodif — Tn a merge, model, fous om Gs Accretion C ‘S Ges up) me ers tin Uys ers psa) & aud ocquisibions fie |) Finande) Reasons > (ON SOLIPATION —— Markel Sate GEOGRAPHY =—~ Neo Cartel 2) Dither reasons > — imp techy patent, or otter iutenecturf peeperdy— ~ Thsd to burinen ~ mphoreus Ctechr start-ups) O detowmine the flare faite —> 006, Public Cons, Pruudut trawsaétions D) ortrumine te fuschare Metiod —s Cote (chrenpast) but fet. contd Wane cand aden” fay tera Pa 5 Cals) Lepend on 16-4 scabs epee on —+ 03S apna pant ( Gxpundig, baying arto factor, Laning dub) The Premium Hook tra buy pouye abou the sells Charvetder's Cid He cbled Gee 9 (aossating Acerdtim | ulin and uate Sern Teller. tempine —+ tno Cond yf Bagot pet es CS before scquiioy qi ede snttiuly ets — varus purchase pry aa Sacto, Psclane Heth fyjounk EpcLen pening Pome vettods aid vogacke is ce Fo. bunple woot — Buufit analysig The Pre-tay Pncome, coulhibuld bg celle ye Fate forgone om cay | eal pid on dit pat 4 Terai &- v ¥ 4 high > Avretve I bags > tie a wont 2 —> Alf cal, —s Nobaudbls —s] Use debt 4 Cqily ) > Rishi tha cath what dts a calls, want 2 ———t wv Buyer Should cbecde Hy bugs. is oka ea O average natio—> Teoh wht _, fo 500 f cone Gh ena, hone [ray cerroh. Met eblyatw not be fhe creoput option NN Ot op tt und 5 bin dale (SDK fE > wHa Sted a u this ts lowe flare poet fax Ie Huo nue ewneuip given forgone intowst on cash, - @ sift moat Harledle, Thumb 6 OY dupes Re ratio > sells Pb Hain —y hctien C buyer get mone oonneige por + paid) Cvs opproach. anumes tral the toxsuls au case, bo prem pad io efpct Cuch a lop" Arucdl Pose co up © compare ot Benepe Buyer's weyhted cost ys Yield of salle, > cote, at "0 eiprocal of sells We Fongne at ate nan (1 fat) Cost of ust: Sabereok wake on dabt (bag tay vats) Sat Pe Ret Treome. facial I= Ea GalasPrivate company valuation A puoatly ound buries ofc fullcly faded burwen — wlucl company fs Ingles be 2 favate 0. wll howe WE A pullicly fraded, juveitor has om option to dwetnfig fy Jes public co, procers traduig tabre ons of ithigaly ih wot cary to get aut of Lrousaltion iu prulele cor, ‘oat quay discound ie praseunt fut foleutcd ouyer for puts bucmen £ fallic Co. > The xi. gor Maen is pac quce, comual because -Hasie wetfore 7. Aivonqied + flows of Jaluin frets o fous Prond Tausatttone D value tiie humid ob i cf é ek hates | © tub —— foe Te final ffafemauh wlth lane digo Ale, polices ©) to fbb @ Pt ~— Ho 7 Trae ne. wo marke price puts ) rot —— IC— huble, = Sharks isting teak public co- > Gifpadt fo cepanale: salariee prom divcbuds 0 Tandte | 4e posal Yuausaciene 2- Past income statements... = Wo divenip ation om ertias sche = Towestaeut ie liquid Uae of ey fouon | $800 $120_|_ 4120 3180_| $200 {$200 | $275 Ai fev — §17 wf futon ep propt 400K (bale. comuikaud $20,000 per pr — 25 $120_| 16 $180 =| $140. All numbers ae in howsands Che eterna g a saloy ie Tere bala ie wad Saute trathss are diverrpad § thy cae. enty about the wise fat comet be dwerige BETA = fultid, (rade sustaunnute — alone. frat tlase mer feet fred claire yee ale — werd] — How dBodty stalkAe ow undianersfead twas, your oat woe vie for alle i wall 4 busines Secathe fuse M0 sibs Haat Could be ayeedid bg duvesseficalion hab if gou could pund out wdat proportion with eg ssstawraut coms pom markel 2 Tell nfeuend Bete = Manket Bate ( corubiliéu voll wantel- ? _{slimate OE aati & WG tad WE 4 Typed pullic Co. be the cxcbor Ute. fin average fo clulecte leveud bale 7 Csfimale. coet of debit and (¢ — Teak Coase as fulouh expense tt Thaler cvosge vitie = — +,00,00° [1,20,00= 3-33 Polis = Bat Default gproad =. 3-26"). Differ tax Cock of Debt = (Ret Spre)Cie) = (lar t s20)I- Me) = Uso Kin, bascl on aug: trduutig Det palin, we Coleulite cool Cofetoh © Clan up the Books — Add 10000 wags to hie a eg Ruwone (dane (rom expen, coplolice a4 dab Clog F1comdlion props Ort) ©) Prvumes tue inpack koxp fouson aayiut foe. operation tncou fot tee tmpack. Dinume expected spout ste Penwed mut = [Ree = 24 (roy. = tor . ral f Pfawrensé- pute 40 valaion = expecled FoF aegtyor | (C00 - 4) =1 Aut) eeite £256,000 = byeded cert asnt year (1-4) (-8) [Coe -3,) > Tnxuate = wos. = 246 000 (hoe) C4) (yo) [Cigar — 22) py Coc = 3.259 = $149 mm — bpetk j= 24. = Re bl. Valu, &4 im push = SMI O-Fo8m (PVE looses)but thu pundon 16 nilio 4 Ge . (807 40-4 rfow 6 make valuation Tatomally consisheut £ ~ checthox Howtiou — Use Hide anewed value for Ol @ Conmidn, the eypeck of sMhquidi wo. (he) WaquidiG Liscount is cceall, clo “20 — sole » Bul Pt Meow vary acre Tira “Ei,) baget Coe) whos these discount wme prom? © Restricted shores —+ coupne mbt pre bubicted yf normed stfiom with we earnings $— A) Growth efimation is difpiculte © Hirtored dot. > colertoron dippiaalt (rot pornble. © hvole imal 2 Nok qualale o— rot hy © Fundamental —y Nad 2 fryporfat fuputs EN) of cumenl earumip—s —esemanng ®) Tax topo colcalaluin 2 complintied as Jou ean be Good founard 9) Going corith._ventapt dec not py Cfernoinal value extumaion) pong. stout why (otees ZG ft in Pacem Aeglinpetinishsiaa| 2) Cato petite — wil lore Honey ivi 9) Uyetive) basnun — aaa <= TD bot» Dp cone a Arrwall ccs yaad Yehratep'c 2) Fast — 3) Too rac, choi operations Bett Fir with, (espera. fobenw 2 I) Finn Gpeufee Protons |— Jf boss atibdaf To a specie cunt —> Bbwali prior earnings se i capt ¢ fpndamentale (ROC) Pernme all atperk of exente. AW cmaot be atbibuttd to Cre expe Compare det vith lant year aud chuck. avy abnormal changes 2: Ppp ath auessge cpouiling margin gam paul. years § opily fo rameouies (As oe gener} rule, you have fo make adjusdmends vy earmi 2 the fh et gol dd ah alin) Fe 7) Oy duel Fons j— ff an be _, bated on asia and eypeced cade, adult tbe gras nabs for fille fu9 says Normalize the carings hg fF eosni o1ucce paiod + tng - Pol er mays 7oh ery probleme @ {oun A YShrabigie + othe, ig mow perananent — opectattions % pact susvey to rowel — went mtn margin Opiates: variable MTS ee Cal Salad gal nla [ae s)inacecf lucoage- oe eq corms, tne. op hae aay Distresseal 1 Hag ite Banksuupleg- hotalaldy 4 eatin Hasenoge wanpocls befe & Com Pr fow's Cow =n thimefe Pre palin the = fon a Reda debt vdancco t + fabs onetime coef Adyust Se DebtValuing young firms or start-up firms B axpels —? Fmt cwrornte Jest earsinge Coupetitort frnanual Sfatewouls ad Potter wv v uv Better 0% worse 2 Rok, Ry inputs Cydutel ? Volablity Rite cf, grout, gpouta ebemales ky diff Crates ~ value= prfitablify pepouion depzpng C-ve earnings) — Mo Speatirects favertwenk in laud, budcings 04 oftucr FA. bull. of value pom ott Wis tc a protean of eitimalioy 2 Veulive Copiled Motlad 2- fonecath cok & paultiple osttinatid count te Tike au “ i Dis Wow Ba} wim 4 tacking © pully traded jo rv can “be expetid Jo go foams in ‘came bused @ioygt pate pub of eeknn LysFoamnework = ) Assen pone cwwuut ctanding tel hat eel duals TM 1s a good period D ttiimade Revenue, grow th > Past grovel nah of the foun CAdjauk a4 por trend) > Growth note op ankle Mote flu Cone i > Bawivs te eb aud Compalifine advantages pocsuacd 5 tae fou 3) Suotemabte Op mangen on alte j > ook ot pium's “Bue vers > Redull, the imeome cfatement Le Gt Lilie mussune of Ms epocating margin: 4) Chamate weimyrt mont: fo quem pa: — vyuall, gz ROCXR but whan a pom Was Negative cody this fone Caunot be used ~ we use a cals [ap nalio typected sumictiment = Expe the 4 Karen sates (Copirf nalio Hew much cals each & of coptad qoromati & Wa muclr copied would be Atecee{ fo paral a forget amount of forewue ~ Ta shady etale , we manus tte ougiel formula. 5) Ghmale kik paramlrs and Discount valis o~ Bala > nk ure Hagpumvion becaue ay Lack of hitb Ly Uce bello up approach. Gomparabte fiw lishd 40 tw? 1 more YEeWS fake anna ge OH of Delt —p nce Ho maling Cant ettinali. based on Li Gittmale an ellimatid valu coverage patio bared on estimated fubre carly, baud om tak dokownine a. willing avd cabeulele cach Colustate tae volun COvminal dalaa is mort ny; Consdir pram of rot being gerig cans)teach Prnalisis Framunok | L Vv Poder 5 PATEL wor pet TD amotyre ou toda, take vor tree approady on wiatane He Conciboala er Hee rear 1) who ic te keg Product [source (S) of the cector® 2) whoa te automus 2) whidr compownes oper tn tw soebrr 2 of fut is Tee elu i 5) fre thine sectors 7 <) weoulion me Guduskny & shat wa Hs key gnovottr drivert F) What ae the reont Duds and doreeporants in the. induitry, ? MARKET OY NAMIC = Haxktl Orewiwo 2 Vallue-chain — Trdutsy Athrachveness —> fodak 5 Fras = Growth Doiwey , cuovunt trends — Maskel challenges MARKET SEGMENTATION = sowie Type [beoduck- ~ Mak Size —> Total Valur and grout = Od ws | curtomers - Geagroplvd seg nontalion = Sub costar Compptirwe LANDSCAPE + ty compebiting s Hair manket share = CoucentrabioyTectine Loy (MEDIUM) commercia CHGH) —huriness foouy > puyol Wert gen tech p = Gamilas Anat avalide frm cote 2 = Coney, Techno logy Patrons = Prins cyclical or depart 2 ~ Mahila) specinticatioy 2 Horizontal / = iit Bare duveusfication Weutreo] | ounces 2 = Sable ermployee ase 19) unlus added cfillect. TAUESTMENT EL FACTORS EIVANCIAL cMepium) manaoememt (HIGH? = Orritlng ov eypeckd| growth ~ an Manoy owt | scale 2 ~ tafiouate? Tounanound Argle ? = tUlteny of acquvwiy [uctigastng Pru? ~ Punemues Margin gustainalte ? — Track “juror of value Cudtion ~ Room, for expansion 2 = ton Ceansvg ely deploy copctiol 2 = Halle | Prudictalte Out ow ? COMMERCIAL Te ctmoloqy = Toye Monkul size - fercnombup Eeneystom ~ Sustainaple competitine Analy — OF Ueda 3, nate ) - Gulia sowed A - cut Concentration J — Sf VALUATION | * = FACTORS PS FINAN CAL ~ Buna Mig (gh grou fod fay verticals ) MANAGEMENT -| easing Faueaue (Celu pyelire, supeak puchases ) — bxpedane | track yecord ~ Gps Horyng — Guowth “ CLn volatile as well an StLXe periods ) ~ Leverage ee GoabrmcFe| Sacktog - foyemm Visible — teenie ESE Pipelune ~ Fusfaiable EBLIDA Mayins > Ponoul baser)